Page:United States Statutes at Large Volume 121.djvu/1047

 121 STAT. 1026

PUBLIC LAW 110–108—OCT. 31, 2007 modified gross receipts, taxable margin, or gross income of the business, by a State law specifically using one of the foregoing terms, that— ‘‘(I) was enacted after June 20, 2005, and before November 1, 2007 (or, in the case of a State business and occupation tax, was enacted after January 1, 1932, and before January 1, 1936); ‘‘(II) replaced, in whole or in part, a modified value-added tax or a tax levied upon or measured by net income, capital stock, or net worth (or, is a State business and occupation tax that was enacted after January 1, 1932 and before January 1, 1936); ‘‘(III) is imposed on a broad range of business activity; and ‘‘(IV) is not discriminatory in its application to providers of communication services, Internet access, or telecommunications. ‘‘(ii) MODIFICATIONS.—Nothing in this subparagraph shall be construed as a limitation on a State’s ability to make modifications to a tax covered by clause (i) of this subparagraph after November 1, 2007, as long as the modifications do not substantially narrow the range of business activities on which the tax is imposed or otherwise disqualify the tax under clause (i). ‘‘(iii) NO INFERENCE.—No inference of legislative construction shall be drawn from this subparagraph regarding the application of subparagraph (A) or (B) to any tax described in clause (i) for periods prior to November 1, 2007.’’.

SEC. 5. CONFORMING AMENDMENTS.

(a) ACCOUNTING RULE.—Section 1106 of the Internet Tax Freedom Act (47 U.S.C. 151 note) is amended— (1) by striking ‘‘telecommunications services’’ each place it appears and inserting ‘‘telecommunications’’, and (2) in subsection (b)(2)— (A) in the heading by striking ‘‘SERVICES’’, (B) by striking ‘‘such services’’ and inserting ‘‘such telecommunications’’, and (C) by inserting before the period at the end the following: ‘‘or to otherwise enable users to access content, information or other services offered over the Internet’’. (b) VOICE SERVICES.—The Internet Tax Freedom Act (47 U.S.C. 151 note) is amended by striking section 1108. SEC. 6. SUNSET OF GRANDFATHER PROVISIONS.

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47 USC 151 note.

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Section 1104(a) of the Internet Tax Freedom Act is amended by adding at the end thereof the following: ‘‘(3) EXCEPTION.—Paragraphs (1) and (2) shall not apply to any State that has, more than 24 months prior to the date of enactment of this paragraph, enacted legislation to repeal the State’s taxes on Internet access or issued a rule or other proclamation made by the appropriate agency of the State that such State agency has decided to no longer apply such tax to Internet access.’’.

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